Our credit rating target is to be within the single A category on a stand-alone basis. This rating ensures access to relevant capital markets at favourable terms and conditions.
As of 31 December 2023, Equinor had a long-term credit rating of Aa2 (Moody’s Investors Service) and AA- (Standard & Poor’s Global Ratings), including an uplift due to state ownership (two notches from Moody’s Investors Service and one notch from Standard & Poor’s Global Ratings compared to their respective stand- alone credit rating assessments of Equinor). This rating is well above our rating target and ensures sufficient predictability when it comes to funding access at attractive terms and conditions.
Equinor generally seeks to establish financing at the corporate (top company) level. Loans or equity are then extended to subsidiaries to fund their capital requirements.
Project financing may be used in cases involving incorporated joint ventures with other companies. The aim is to always have access to a variety of funding sources across different markets and instruments, as well as maintain relationships with a core group of international banks that provide a wide range of banking services.
About our external debts, loans and bond issuances
Normally the parent company, Equinor ASA, incurs the external debt and then extends loans or equity to wholly owned subsidiaries to fund capital requirements within the group.
Equinor Energy AS is co-obligor or guarantor of existing debt securities and other loan arrangements of Equinor ASA. As co-obligor, Equinor Energy AS assumes and agrees to perform, jointly and severally with Equinor ASA, all payments and covenant obligations for this debt.
Long-term funding is raised when we identify a need for such financing based on our business activities and cash-flows or to pre-fund when market conditions are considered favorable.
Equinor has been a regular bond issuer and Equinor’s current long-term ratings are AA- and Aa2 from S&P and Moody’s, respectively.
Bond issuances* 2011 - 2024 per currency
(Equivalent in USD) Updated 31 December 2024
The USCP programme is used for shorter maturities (up to 364 days), while the EMTN Programme and the US Shelf Registration are used for longer maturities.
The different funding programmes ensure that Equinor has sufficient flexibility when choosing the following:
- Maturity
- Currency
- Interest Rate (Fixed or Floating)
- Geographic Market (Europe, USA or Asia)
US Shelf Registration Statement
The registration statement is a filing with the Securities and Exchange Commission in the U.S and it permits multiple public debt offerings without having a separate prospectus for each offering. The registration statement is the base prospectus and will be updated with prospectus supplements for any subsequent debt offerings. The base prospectus is updated every third year.
The EMTN programme
The EMTN Programme was established in 1997 and is listed on the London Stock Exchange. The Programme ensures Equinor access to non-US markets and is a good complement to the US Shelf Registration.
The EMTN Programme was last updated on 30 April 2024. The programme has a limit of EUR 20 billion.
